Survey confirms mortgage advisers help Kiwi borrowers save money


Kiwi borrowers who get help from mortgage advisers are better off than those who don’t. That’s the vital message from new research by Financial Advice New Zealand.

The survey involved 2000 participants from across the country. The research found that 65% of people who received mortgage advice owned their own home, compared to  60% of unadvised participants.

However, when it comes to reviewing their mortgages, the difference was much starker. Only 68% of unadvised people have reviewed their mortgage in the past year, compared to 86% of those with a mortgage adviser. A majority of those using an adviser adjusted their mortgage. Changes made included offsetting their mortgages, switching to floating rates or varying the amount and frequency of payments.

And a remarkable 90% of those who reviewed their mortgage with an adviser’s help believe the changes will save them money.

Regularly reviewing your mortgage is one of the best things you can do to keep mortgage costs down. It can save you thousands of dollars and shave years off the loan period.

Many people leave a review until their fixed home loan term is about to end. However, with interest rates climbing, cheaper products may be available on the market well before that marker point. Having an adviser on your team who is aware of the trends can help ensure you’re aware of what’s going on.

But it’s not all about interest rates. Structuring your mortgage in the right way also has a big impact.

So, if you have a change in personal circumstances such as a new job or performance bonus, a review is a good idea.

Loan Market’s advisers have access to more than 800 loan products from the most extensive panel of New Zealand's leading banks and lenders. We can find the right product for you at the best rate.

Even better, our review services are free, with only a few exceptions. Generally, you won’t have to pay a cent because we are paid by the lender you choose.

Financial Advice New Zealand’s research makes clear the benefits of using an adviser. Those receiving advice better understand the value of reviewing and changing their mortgages. The vast majority (84%) of advised Kiwis changed at least one aspect of their mortgage, resulting in long-term savings.

Ready to review your mortgage and make savings of your own? Get in touch with your Loan Market adviser today.